GREIT07075 - Breaches of conditions: summary table
| Condition breached | Listing | Close company | 3 property | 40% property value | Distribution | 75% asset test | 75% profit test |
| Breach does not result in exit from regime | Takeover of one UK-REIT by another | 1. Takeover of one
UK-REIT by another
2. Actions of someone other than company | Any | Only if not a necessary consequence of breaching “3 property” rule | None* | If ratio remains above 50% | If ratio remains above 50% |
| Time allowed to rectify breach to avoid exit | None stated | 1. None stated
2. End of next accounting period | None stated | None stated | 3 months after profits finally determined** | End of next accounting period after start of initial breach | End of next accounting period after start of initial breach |
| Length of a “single breach” | n/a | n/a | Up to end of next accounting period after start of initial breach | Up to end of next accounting period after start of initial breach | Measured by reference to accounting periods | Measured by reference to accounting periods | Measured by reference to accounting periods |
| Number allowed in a ten year period | n/a | 1. n/a
2. None stated | 2 | 2 | Any number | 2 for either condition | |
* tax charge is levied on UK-REIT on deemed income equal to
shortfall in distribution
**applies only where the shortfall is the result of an
increase in the finally agreed profits of the tax-exempt business
compared with the amounts shown on the CTSAS return
